Econometric Testing of the Displacement Effect: the Saudi Experience
In this paper we have to explore the Displacement Effect in Saudi Arabia during the period (1970-2012) for real oil GDP and Non Oil GDP. We used a method as a time series econometrics techniques to examine how far the Displacement Effect validity can be applied in Saudi economy, by Using time series annual data for the periods during (1970 to 2012), (1970 to 1990) and (1991 to 2012). Three distinct time series techniques have been applied. The results obtained from the analyses find that the Peacock and Wiseman Version of Wagnerian proposition can explain the growth of government in Saudi Arabia, which holds for both the oil and non-oil income cases, and we have a structural break in the data. The findings also note that the existence of strong causality for Peacock and Wiseman Version of Wagner‟s law in the long run.
|Date of creation:||13 Jul 2013|
|Publication status:||Published in Journal of Transformative Entrepreneurship 2.1(2013): pp. 100-111|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Alan T. Peacock & Jack Wiseman, 1979. "Approaches To the Analysis of Government Expenditure Growth," Public Finance Review, SAGE Publishing, vol. 7(1), pages 3-23, January.
- Gabriella Legrenzi, 2004. "The Displacement Effect in the Growth of Governments," Public Choice, Springer, vol. 120(1_2), pages 191-204, 07.
- Ólan T. Henry & Nilss Olekalns, 2002.
"The Effect of Recessions on the Relationship between Output Variability and Growth,"
Southern Economic Journal,
Southern Economic Association, vol. 68(3), pages 683-692, January.
- Henry, O.T. & Olekalns, N., 2000. "The Effect of Recessions on the Relationship between Output Variability and Growth," Department of Economics - Working Papers Series 745, The University of Melbourne.
- Alan T. Peacock & Jack Wiseman, 1961. "The Growth of Public Expenditure in the United Kingdom," NBER Books, National Bureau of Economic Research, Inc, number peac61-1, Enero.
- Engle, Robert F & Granger, Clive W J, 1987.
"Co-integration and Error Correction: Representation, Estimation, and Testing,"
Econometric Society, vol. 55(2), pages 251-76, March.
- Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Publishing House "SINERGIA PRESS", vol. 39(3), pages 106-135.
- Henrekson, Magnus, 1990. "The Peacock and Wiseman displacement effect : A reappraisal and a new test," European Journal of Political Economy, Elsevier, vol. 6(2), pages 245-260, October.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:50565. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.